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Most studies on the relationship between public debt and economic growth implicitly assume homogeneous debt effects across their samples. We - in accordance with recent literature - challenge this view and state that there likely is a great deal of cross-country heterogeneity in that...
Persistent link: https://www.econbiz.de/10011436881
Most studies on the relationship between public debt and economic growth implicity assume homegenous debt effects across their samples. We - in accordance with recent literature - challenge this view and state that there likely is a great deal of cross-country heterogeneity in that relationship....
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This study estimates a Panel Vector Autoregressive (PVAR) approach to analyse the impact of fiscal policy and public debt on economic growth in Southern African Developing Communities (SADC). The study further estimated the fixed effects (FE) and random effects (RE) to verify the robustness of...
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's growth theory shows that credit-financed investment, which leads to an innovative use of existing resources, plays a decisive … neoclassical theory, which assigns the state merely the role of a capital destroyer. But it also offers a broader perspective than … that of monetary Keynesian theory, including MMT, in which government debt is seen to serve only to produce full employment …
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A growing number of recent works support the idea of debt threshold level (turning point), above which debt starts reducing economic growth. However, estimated threshold varies sharply across studies and gives a little insight into what the optimal level of debt is. The point is that there is no...
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